MMR: Mass Market Retailers, July 13, 2020

The Global Response To COVID 19 to Gauging the Pandemics Impact Around the World The COVID 19 pandemic is global but the impact and the response have been mostly local with varied approaches in different parts of the world On this page MMR shares stories about how retailers and shoppers have been affected in Australia China and Israel In Israel the Pendulum Has Started to Swing Back to Normalcy By Leon Koffler familiar tragedy in Israel and like with all our tragedies the public reacted with amazing haste Within days the focus was not on the problem but finding solutions No masks immediately we had plane loads arriving from China Out of sterilizing washing gel we got the factories to produce 24 hours a day Pharmacists were afraid to stand in front of potentially sick customers so plastic barriers were installed with emergency priority and face guards were given to those on the floor If youre not part of the solution you are part of the problem Restaurants closed shops closed shopping malls closed offices emptied out parks closed and it just keep going When we knew the problem the solution was not far behind Restaurants created home delivery Zoom became the most famous word in Israel as all companies had a work from home policy You couldnt We understood the pressure and were not afraid to be in the front lines with our staff Digital Coupons Boost Chinese Restart Editors Note In their continuing series Alice Wang and Ed Rowland examined the strategic use of digital backwards to move forward Chinas digital consumption coupons are fueling the countrys recovery In the past two months China has issued 19 billion consumption coupons across 28 provinces and major cities The structure of the coupon program has two important points Digital coupons have spurred structural and potentially permanent incremental growth serving as seed money achieving a multiplier effect not seen elsewhere Observers liken the approach to targeted therapy Alibaba affiliate Ant Financial reports that coupons issued through Alipay have driven 35 times consumption Every RMB in coupon value spent by Chinese consumers has on average caused an additional RMB 25 in consumption Consumption has remained stable with no obvious drop off after some time Historically societal consumption could be expected to plateau and drop off after coupons have been used but this did not The pandemic has started to swing back To the great relief of everyone the cars are back on the street stores are opening shopping centers are allowed to function under strict guidelines and restaurants open next The pandemic had brought Tel Aviv from a high energy 24 7 nonstop city to a grinding halt of deadly silence within days Stoked by fear panic buying ravaged the shelves of supermarkets and pharmacies as government decree closed everything except for these essential needs For many the last three months of COVID 19 have been a disaster Unemployment reached 24 the government has been slow to react with any financial aid and the authorities have not given the direction needed due to lack of conviction and factual data from their own resources However the loss of life is a find a computer or laptop as they were all sold out For us the working environment was frantic as panic and fear were driving the public reactions Our stores couldnt cope with the immediate pressure so we quickly changed our priorities to e commerce and click and pick at the stores with curbside service We saw out of the box thinking brave decisions on capital spending and the commitment of a strong team that put the welfare of others before our own Within a week e commerce sales reached our projection for the whole year within three weeks we were at our projected numbers for 2024 and we were bursting People over 65 were in lockdown and couldnt get their medicines so we started deliveries to them at home for free As the need arose the solutions were not far behind Ingenuity and compassion ruled the day for all of us in the Super Pharm family When times became really difficult and we were forced to close stores in shopping malls we made a decision not to fire any one of our employees Staff was shifted to other stores to assist and our family only became stronger One thing however was not done and that was to take advantage of our customers by inflating prices The decision was made to sell masks and gels at our cost as it was evident the economy was being hit hard Realizing that talk is cheap we pulled together our executive management team and decided to spread across our country visiting every one of our 260 stores We didnt just talk we understood the pressure and were not afraid to get out and be in the front lines with our staff When I look back a few words stand out above the anxieties Focus clear concise communication decisive leadership and most of all compassion from the bottom up We are a people business Our customers were in panic and it was our challenge to be there as many times someones life depended on it Israels results have been a direct result of the attention given To date 3520 cases of COVID 19 have been identified with 302 deaths attributed to the disease We continue to do our best to foresee what the future has in store for us as I am almost sure this wont be the last crisis we deal with However with all the dramatic prophecies of a changing world I believe the results will be moderate due to what I identify as the human factor All in all we will bounce back its in our DNA The lesson learned is not for the present but how we will prepare for the future and it is coming Leon Koffler is chairman of Super Pharm based in Israel coupons and how that system is enabling China to recover from the COVID 19 economic challenges Did China use lessons from the past to solve a modern problem By Alice Wang and Ed Rowland China has been using a unique and successful stimulus approach to restart its economy digital coupons A journey back to the fourth century may help explain why it is working The naturalist Daoist philosopher Zhuangzi used everyday people and animals to impart philosophical wisdom One of his famous parables is known as the three in the morning story involving monkeys A trainer went to his monkeys and told them they would receive three chestnuts in the morning and four in the afternoon They revolted and settled on four in the morning and three in the afternoon The trainer changed the arrangement to meet his objectives Stimulus was needed to spur the Chinese economy And more up front chestnuts in the form of strategically targeted coupons seemed to have worked One wonders if Chinese leaders looked happen Digital coupons behave differently than printed ones There was no drop off Digital coupons have incomparable advantages they are easier to distribute more convenient to use and less susceptible to speculation and black marketing The 15 million RMB coupons were distributed in minutes Observers likened it to targeted therapy The consumer coupon approach did not answer all of Chinas recovery challenges For low income and low savings groups the government issued direct cash bonds to cover urgent needs with the fundamental intention of spurring consumption and providing a stimulus to manage through the crisis For China the road was appreciating and consuming four chestnuts in the morning Meanwhile everyone strives to keep calm and carry on Alice Wang is a consumer health care professional with deep knowledge of Chinese e commerce the worlds largest internet market Ed Rowland is the principal of Rowland Global LLC www rowlandglobal com he believes in the promise of global business and supports companies in their strategy tactics and execution of international growth initiatives Australian Shopping Forever Altered By Steve Liebmann We are living in a post pandemic world and Australia is no exception Now officially in recession COVID 19 has had a profound impact on Australias shopping habits and experts say the crisis has permanently reshaped the way we shop Social distancing and the lockdown have led to a significant growth in online shopping which is now a core element of the total retail offering Louise Grimmer a senior lecturer in marketing at the Tasmanian School of Business and Economics says online shopping will now be integrated into the retail landscape and the way people shop She adds that consumers can expect to see a ramping up of online shopping and stores will emphasize services such as click and collect or curbside pickup In the meantime COVID 19 will likely accelerate the decline of some retail channels that were in trouble before the pandemic It is possible that in Australia there will be a rationalization of department stores and a change of model to accommodate a post pandemic world where more people are working from home and reassessing their values and the role luxury items play in their lives A recent survey by the Australian Bureau of Statistics found that twothirds of businesses across all sectors had taken a hit to revenue or cash flow because of COVID 19 Roughly the same number reported they had suffered a drop in demand and 40 said they have changed how they are delivering services and goods As we had towards the end of the Australian financial year June 30 and after a horror April shops are reopening and people are venturing out of their homes a sign that things might be improving But the recovery will be slow and the retail landscape will never be the same Steve Liebmann is the MMR and Chain Drug Review Australian correspondent 10 MMR July 13 2020